Market MoversOn The Rise U.S. cannabis producer Green Thumb Industries Inc. (GTII-CN) jumped as it almost doubled its revenue in the second quarter and exceeded estimates on Wednesday, as demand soared for its pot-infused products and more people stepped into its stores.
Like the rest of the cannabis industry, Green Thumb has benefited from prospects of federal marijuana legalization in the United States, with its shares climbing nearly 31 per cent this year thanks to a surge in pot use during the pandemic era.
“The great American growth story in cannabis is happening --the momentum is undeniable... there is still incredible untapped potential in all of our operating regions, and we will continue our strategy to invest in high-return initiatives,” Chief Executive Officer Ben Kovler said in a statement.
Headquartered in Chicago, Illinois, Green Thumb has 16 manufacturing facilities, licenses for 111 retail locations and operations across 14 U.S. markets.
Green Thumb’s revenue rose to US$221.9-million in the second quarter ended June 30, beating a Refinitiv IBES estimate of US$207.25-million on the back of growth in its consumer packaged goods and retail businesses in Illinois and Pennsylvania.
“The fundamental driver here is a tidal wave of demand... at the core here, Americans are going to choose cannabis for wellbeing,” Mr. Kovler said in call to Reuters. Green Thumb, which owns the Rise dispensary chains, said retail revenue increased 15 per cent sequentially.
Net income attributable to the company was US$22.1-million, or 10 US cents per share, compared with a net loss of US$12.9-million, or 6 US cents per share, in the prior year. It was Green Thumb’s fourth consecutive quarter of positive net income.